Business Law Report: Magnificent Salon Services Ltd Case Study

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BUSINESS LAW

Table of Contents
INTRODUCTION........................................................................................................................2
TASK 1...................................................................................................................................... 3
TASK 2...................................................................................................................................... 6
TASK 3...................................................................................................................................... 9
TASK 4.................................................................................................................................... 13
CONCLUSION.......................................................................................................................... 15
REFERENCES........................................................................................................................... 16
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INTRODUCTION
The business practices of the company possess huge importance in their functioning and
operations. It is essential for the company that they working in a moral and ethical manner
in the business such that suitable benefits could be availed. The role of business law has
been vital in the functioning of the company. A study has been conducted regarding the
application of business law in the company so that significant understanding regarding the
area could be attained (Andrews, 2011). Magnificent Salon Services Ltd. is a company who
has been facing legal issues such that they seek to attain legal advice. The study would focus
on explaining the importance of business law and different aspects regarding the law and
legislation. It is vital for the company that they work on key aspects regarding business law
for effective functioning.
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TASK 1
Magnificent Salon Services Ltd has been facing legal issues due to their poor business
practices. The owner of the company seeks to gain information regarding the legal system of
the country. A report has been developed to discuss the required aspects of the legal
system.
DIFFERENT SOURCES OF LAWS
The laws are known as the rules which are enforced by the State in the administration of
justice. The rules are enforced by the courts and they are adopted by the society. The laws
in the English system have been classified into two categories such as civil and criminal laws.
There are courts and tribunals which deal with the laws in the country such that the civil
courts are Supreme Court, the court of appeal, high court, and county court while the
criminal courts are similar to civil courts but they also have crown court and magistrate's
court (Dignam and Lowry, 2012). These courts ensure that the laws are followed and when
they are broke by the individuals then suitable punishment should be given.
In the present day, the source of law in the country is case law (Judicial Precedent),
legislation (Acts of Parliament), and EU Law. In the case of law, the decisions of the past
cases are followed in the present cases. The parliament has developed several legislations
through Houses of Commons, Houses of Lords, and the Monarchy. The application of the
European Communities Act 1972 is followed in the country currently.
COMPLIANCE WITH LAWS
Magnificent Salon Services Ltd has been working for six years in the market and they have
maintained a substantial position. The accident which occurs at their salon impacts their
image and consumer base at a huge level. It is essential for the company that they
effectively work in compliance with certain laws in order to maintain their effectiveness in
the business. The company should work with Health and Safety at Work Act 1974, National
Minimum Wage Act 1998, Patents Act 1988, Companies Act 2006, Consumer Rights Act
2015, Equalities Act 2010, and Occupiers Liability Act 1957 (LaMarco, 2019). The working
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practices of Magnificent Salon Services Ltd under these laws would be effective in nature
and also assist the company in carrying their business practices significantly.
ROLE OF GOVERNMENT IN LAWMAKING
It has been evident in the English System that the role of government is vital in lawmaking.
The governance in the UK has been dependent on three distinct branches which play a
significant role in the process of lawmaking. The branches are mentioned below:
 The Executive – It comprises of the Prime Minister and cabinet who are responsible
for propose laws that are further converted into the laws.
 The Legislature – Also known as parliament, this has the responsibility of converting
the policies into the laws as per the legislative process.
 The Judiciary – The court system possesses the responsibility regarding the
administration of justice in the country and also ensures that the laws are perceived.
Moreover, the role of the judiciary in the UK regarding the making of laws has been
huge.
STATUTORY AND COMMON LAW
The common law is the law which has been evolved through the new decisions which are
made by the judges in the court while the statutory laws are the written laws which have
been passed by the legislature and executive of the country and further followed by the
society. Moreover, the application of the common and statutory law in the justice court
could be explained through significant scenarios. In common law, the justice court seeks the
outcome of the previous case of similar nature in order to conduct the proceeding of an
existing case (Llewellyn, 2016). The common law for a certain case is determined by
carrying the process of research analysis, previous cases, statements, and sentences passed
in former for evaluating the application of common law. The decisions which are made by
the higher courts rule over the lower courts and the former cases. In statutory laws, the
laws have been already written such that they are applied to certain cases.
The common law could be developed on a daily basis such that suitable improvement and
development could be made without influencing the society or resulting extra expense on
the government. Further, the statutory laws have been developed by the legislature and
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they have been organized and codified in certain law codes. The statutory laws cover the
majority of the areas such that they also cover the areas which are not covered by the
common law. Injustice court, both the laws could be applied by considering the scenario
such that suitable outcome could be attained.
EFFECTIVENESS OF LEGAL SYSTEM
The English legal system is distinct in nature against other legal systems in the world. The
legal system of the country is adversarial in nature which reflects that the judge is neutral in
nature and they don't require evidence but the inputs from the prosecution and defence let
the case in a forward direction then the judge decide to conduct a trial or not. In addition to
this, a common law system is followed in the country which helps in dealing with the cases
effectively. The jury system in Britain is quite effective in comparison to other countries.
Here, the jury and judge work together on a decision (Partington, 2019). The nature of the
English legal system is dualist regarding international law such that the international law is
applied in the country through the national law.
The parliament of the UK is sovereign in nature such that they could create or end any law
which could not be overruled by the court. Moreover, there are various changes and
developments that have been perceived in the English legal system. The major change has
been observed in terms of institutional change as there are various institutions that have
been developed to enhance the legal structure (Partington, 2019). In future, the use of
information and technology in the justice system would be carried for enhancing the quality
of the legal system.
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TASK 2
It has been evident that the impact of the law has been significant on the business. The
business operations of Magnificent Salon Service Ltd would be influenced by the
employment and contract law at a certain level. The illustration regarding the potential
impact of employment and contract law on the business of Magnificent Salon Service Ltd
has been carried as follow.
IMPACT OF EMPLOYMENT AND CONTRACT LAW ON MAGNIFICENT SALON SERVICES LTD
A contract is explained as an agreement which is considered as the legal binding for the
involved parties. This agreement is recognised and enforced by the law for maintaining its
viability. There are different kinds of contracts which are major in the business such as
employment, partnership, sales of good and services, consumer credit, etc. The contract is
comprised of certain aspects such as agreement, consideration, and intention to create a
legal relation (Freedland et al., 2016). Moreover, there are certain factors which could
impact the genuineness of the contract like misrepresentation, mistake, duress, undue
influence, and illegality. The employment law is also stated as an employment contract
which states that a party would be providing their services in terms of certain remuneration.
The business practices of Magnificent Salon Service Ltd possess a significant impact on the
operations and reputation of the company. It is essential for Magnificent Salon Service Ltd
that they cover essential aspects of the employment contract in order to deliver quality
services to their employees who would result in high productivity and efficiency. The
employment contract is comprised of Employment Rights Act 1996, Working Time
Regulation 1998, National Minimum Wage Act 1998, Health and Safety at Work Act 1974,
Equality Act 2010, and Data Protection Act 2018. The breach of the employment contract
would occur due to repudiation by the employee or employer, summary dismissal and
constructive dismissal (NHF, 2019). The breach of employment contract by Magnificent
Salon Service Ltd would result in compensation to the employees. There are different kinds
of compensation which could be followed during the breach of employment.
The situation of redundancy could be observed in the company as the employees would be
dismissed because the job does not exist anymore or the employer is not continuing. The
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action in this scenario should be taken in six month or suitable compensation should be
provided. Magnificent Salon Service Ltd should ensure that they consider every aspect of
the employment contract. If the employment contract is ineffective in nature then it would
impact the reputation of the company and it would also result in a huge impact on the
business practices.
Moreover, it could be comprehended that the role of contract and employment law has
been significant for the company. If Magnificent Salon Service Ltd does not follow the
employment and contract law significantly then there would be various consequences which
would be faced by them. The business operations of the company would be suspended by
the justice court of the UK. In addition to this, a huge amount of compensation would be
provided by the company to the employees. The consumers in the current scenario have
been facing significant challenges due to the ineffective business practices which could
impact the reputation of the company and also make the owner behind the bars.
IMPACT OF REGULATIONS, LEGISLATION, AND STANDARDS ON MAGNIFICENT SALON
SERVICE LTD
The regulations, legislation, and standards are quite similar in name but they have been
distinct in nature. It is essential for the company that they effectively understand the
difference between each aspect in order to fulfil their responsibility towards it. The basic
understanding of regulation, legislation, and standards could be attained as the legislative
bodies in the UK pass the laws while the government agencies initiate suitable regulations in
order to implement the laws (Focus, 2019). At last, there are developments agencies create
and approve suitable standards.
Standards – The standards provide certain specifications regarding the products and
services in order to ensure their viability. If the system is utilized consistently then it is
essential that its safety, quality, and efficiency should be maintained. The standards are also
termed as a reference document which provides the detail of the criteria (Focus, 2019).
There are certain standards which are important for Magnificent Salon Service Ltd to follow
such as the development of health and safety policy, staff training, appointment of the first
aider, regular risk assessment, allergy alert system, and equipment safe.
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Regulations – The regulations help in stating the detailed instructions regarding the
enforcement of the laws. The application of those laws is vital in the company. Magnificent
Salon Service Ltd should work in compliance with certain regulations in order to carry their
operations appropriately. The company needs to obtain a license, get insured, and
development of business accountancy (Focus, 2019). It would help in conducting business
operations appropriately (Watts, 2019).
Legislations – The system of rules that have been introduced by the government of the
country are enacted by the legislative body which is further signed by the ranking official.
The UK government has introduced various legislations and laws for the companies in order
to conduct ethical operations (Focus, 2019). It is vital that Magnificent Salon Service Ltd
should work in compliance with certain legislation for their business such as Employment
Law 2019, Minimum Wage Act 1998, Equality Act 2010, Health and Safety at Work Act 1974,
Control of Substances Hazardous to Health Regulations 2002, and Cosmetic Products
(Safety) Regulation 2004 (HJ, 2019).
The impact of standards, regulations, and legislation on Magnificent Salon Service Ltd has
been huge such that it is vital for the company that they effectively work in compliance with
them in order to carry their business operations in a significant manner.
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TASK 3
LEGAL SOLUTION FOR MAGNIFICENT SALON SERVICES LTD
Magnificent salon services could face a range of business problems if the customers opt for
legal proceedings in the court of law. Some of the key business problems that the company
could face are Termination of contract, Insolvency and liquidation because it is the duty of
salon to become familiar with the chemicals they are using as well as to carry a preliminary
test to before applying it on every customer. A failure to select appropriate treatment and
using the product in the correct manner could lead the salon in serious consequences.
Before any court proceedings both the business should emphasise on Alternative Dispute
Resolutions (ADR) (Fiadjoe, 2013). Thus, the business should focus on opting most
appropriate solutions from the available alternative legal solutions discussed below:
NEGOTIATIONS: negotiation involves the resolution of disputes through appointing own
representatives by both the parties to engage with each other to deal with the issue and
develop a common solution (Mackie and Mackie 2013). Here, the customers are seeking the
help of citizen's advice bureau and the business owner Mrs John Ruska seeks the advice
from a lawyer to negotiate on the dispute. With the involvement of lawyers and advice
bureau, the differences could be settled among the salon and customers by reaching a
common agreement.
MEDIATION: the process of mediation involves third party assistance in resolving a dispute.
The process of mediation emphasises on the problem and facilitates in the process of
resolution by allowing parties to resolve the dispute. In this process, a mediator raises
certain questions that support in uncover the overall problem and assist the parties to have
a clear vision about the issue (Chong and Mohamad Zin, 2012). The mediator also supports
in developing an alternative solution to the problems for resolving the issue.
CONCILIATION: the process of conciliation involves the resolution of the dispute by focusing
on finding or proposing solutions on the basis of the demands of both the parties. In this
process, conciliators meet with the parties separately and attempt to resolve the
differences. Conciliator plays an active role in the process while mediator assists throughout
the process (Chong and Mohamad Zin, 2012).
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ADJUDICATION: generally adjudication is free to use, this process involves an adjudicator
that looks for the written evidence the complainant draws against the other party to make a
decision (Singer, 2018). The adjudicators are the experts in the particular area of complaint
and are usually approved by the CIArb (Chartered Institute of Arbitrators).
ARBITRATION: it could be referred to as an informal trial that seeks the help of a neutral
third party known as independent arbitrator top make decisions. The decision of the
arbitrator may have agreed to be binding or non-binding. The binding decision can be
enforced by the court and considered as a final decision (Blake, et al., 2016). The process of
arbitration is regulated by Arbitration act 1996.
In this case, the best possible solution is that the customers can demand compensation for
their loss or medical treatment. The Magnificent salon can effectively deal with this
situation if it has general liability insurance cover. The general liability also supports in
covering the court costs in case of legal proceedings.
POSITIVE AND NEGATIVE IMPACTS OF LEGAL SOLUTIONS
While selecting the best alternative dispute resolution method, the magnificent salon
should consider the positive and negative impact of each solution to choose the best
suitable solutions. The key benefit of alternative dispute resolution is to avoid the
complicated, costly and time-consuming process of legal proceedings by a court trial. Both
the company and the customers can reach an effective solution without the hassle and
court delay. However, the key disadvantage of ADR is that there is very little opportunity for
judicial review. ADPR can be used as a stalling tactic to waste the time of the other party by
keeping them busy in the process. The positive and negative impacts of each legal solution
are discussed as follows;
Negotiation:
Advantages: The key advantage of negotiation is that it could take place up until or during
the court proceedings. Negotiations are voluntary and the involved parties can leave the
negotiation at any point. This creates a level of trust and dedication in proceedings but the
same advantage can also cause a problem if one party leave the process in middle as the
money and efforts of put into negotiation process could have completely wasted.
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Disadvantages: The key disadvantage of negotiation that limits its effectiveness in some
situation is that some parties enter in the negotiation in bad faith (Mackie and Mackie
2013). Moreover, if an involved party have higher power than the other party, the
negotiation can be one-sided that affects the fairness of the situation.
Mediation and Conciliation
Advantages: The process of mediation facilitates in developing a mutual solution that is
agreed by both the parties. It is a totally voluntary process that quickly resolves the problem
without investing in a higher cost. The parties retain their control in the mediation process
(Chong and Mohamad Zin, 2012). Moreover, it also supports maintaining the relationship
between the customer and the salon.
Disadvantages: The mediator cannot force the parties to follow their decisions. There is a
presence of uncertainty regarding the results in a settlement. The process of mediation
takes place in private space and lack of public's knowledge on the issue could result in
repetition of allegedly illegal conduct.
Adjudication:
Advantages: the process of adjudication facilitates in producing the final decision that
should be respected by both the parties. Involved parties hold the rights for selecting the
adjudicator and there is no formal evidence and cross-examination are involved in the
process. It is a flexible and streamlined process (Singer, 2018).
Disadvantages: The adjudicators have no jurisdiction beyond a contract and do not always
lead to dispute settlement.
Arbitration:
Advantages: It is a faster, less formal and more private method of resolving any dispute as
compared to legal court cases. As a part of the contractual agreement, both the parties have
greater power in the choice of arbitrator. This method is more flexible (Blake, et al., 2016).
The involved parties could choose and arbitrator who has expertise in the related field of
law.
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